Denny’s, the iconic diner chain, is nearing the conclusion of a significant multiyear strategic effort aimed at bolstering its financial health and strengthening its operational footprint by shutting down over 150 underperforming locations across the United States.
The company plans to wrap up these closures by the end of 2025 as part of a strategy to optimize its franchise system. This comprehensive pruning effort began two years ago, with executives reporting in February that 88 restaurants had already been shuttered in 2024 alone, with another 70 to 90 expected to come offline by the end of 2025. The company’s goal is to return to flat or slightly positive growth by 2026.
The Impact of the Closures
Denny’s has been rigorously evaluating locations with consistently low sales figures. The closures have impacted several states, with California being particularly hard hit.
Partial List of Impacted Locations (2025 Closures)
| State | Location Details |
| California | Santa Rosa (1000 W. Steele Lane); Oakland (601 Hegenberger Road); San Francisco (816 Mission Street). |
| Idaho | Boise (2580 Airport Way); Nampa (607 Northside Blvd). |
| Massachusetts | Worcester (494 Lincoln St.). |
| Ohio | Ashland (U.S. Route 250); Ontario (720 N. Lexington Springmill Road) and Goodfellow St. |
| Pennsylvania | Bucks County (640 E Lincoln Hwy). |
| Texas | Lubbock (607 Ave.); New Braunfels (1348 I-35 N. Frontage Road). |
The Upcoming Buyout
Adding another layer of change, Denny’s might see further corporate restructuring in 2026 due to a recently announced $620 million buyout by private investors. The deal, which values the company at $322 million for shareholders, is expected to be finalized in the first quarter of next year.
Despite the ongoing operational streamlining and the impending change of ownership, Denny’s stated that it’s “business as usual” across its existing network of over 1,300 US restaurants and nearly 1,500 worldwide. The company confirmed that new locations are still planned for next year.